How the R&D credit applies to Bradenton businesses

The federal R&D tax credit rewards work that tries to improve a product or process through design and testing. In Bradenton that often means manufacturers refining parts and production methods, boat builders working on hulls and layouts, and engineers solving problems for clients.

The credit is claimed on the federal return, so Manatee County companies follow the same rules as any other. Many are family-owned S corporations or LLCs, so the credit passes through to the owners and your CPA files it with the return.

Work we often see in and around Bradenton

• Manufacturers: new parts, tooling and faster or cleaner production

• Marine and boat building: hull and layout design, new materials and custom builds

• Engineering and architecture: custom designs and technical solutions for clients

• Software and technology: automation and data tools built for the shop floor

Work that often qualifies

• Redesigning a part or fixture to cut waste or improve fit

• Testing new materials or build methods on a boat or product

• Prototyping a custom solution and revising it after tests

• Changing a production line to improve yield or quality

• Building software or controls that automate a manual process

Work that usually does not

• Routine production runs to an existing design

• Repairs and maintenance with a known fix

• Copying a competitor's product without changing it

Costs that count

Wages for the people doing the work, supplies used in testing and a share of outside contractor costs can count when they tie to a qualifying project. We match each cost to a project so your CPA has a file that holds up if the IRS asks.

What to bring to a screening

• A list of new or improved products and processes from recent years

• Names and roles of people who worked on them

• Drawings, build notes, trial results or photos

• Payroll and supply totals for those projects

Based in Sarasota, just down the road, we work with Bradenton and the rest of Manatee County, and with businesses across Florida and the United States.